Italian SME group cuts out banks with first minibond ABS trade
A group of eight Italian water utility companies have issued asset-backed securities backed by their own minibonds, in a novel technique that its structurers hope can be replicated to unlock funding for small and medium-sized companies throughout Europe and offer them an alternative to bank borrowing.
A special purpose securitization vehicle called Viveracqua Hydrobond 1 fully subscribed €150m of minibonds issued by the eight companies as the Viveracqua Consortium on a cross-collateralised basis, before issuing the same value in ABS.
The deal was co-arranged by structured finance specialists Finanziaria Internazionale (Finint) and Veneto Sviluppo, ...Already a subscriber? Login